Sticking to the plan and being patient.
The way LBI is now set up, there is a lot of delayed gratification built in. The set up will work, for sure, provided the projects we have invested in continue to operate as planned. The factor that we need for things to really kick into gear for LBI is simply letting time run its course and stick to the plan.
There are a number of ways I could give our short term income and dividends a boost.
Use HBD post payouts.
The way the plan is set up, is that when our content rewards get paid out, the HBD received gets all sent to @eds-d to build our EDSD balance. These could easily be swapped into LEO and added to the income wallet. Over the last 7 days, we have received 18.569 HBD in post payouts. Not bad, we had some well supported posts amongst that.
If that got swapped through to LEO, we would have around 635 LEO at current prices. That one thing doubles the income, and would make the APR from holding LBI (once dividends restart) much more appealing. It's definitely tempting.
The plan is, however, that growing the asset base is priority number one. By savings these HBD's as EDSD, we have added 18.569 HBD value (thus USD value) to our asset base, permanently. Post payouts are a fickle thing, and require consistent activity levels to maintain. My goal is to build steady growing income, and increasingly passive income over time. Paying out post rewards is a short term fix.
As tempting as 600+ LEO in the income pool (remember as operator of LBI, I get a cut of the income pool), the right long term move is to use those payouts to build the assets, so long term growth is assured.
Sell some DBOND each week.
Again, we are receiving a decent chunk of DBOND each week from our RUG holdings. DBOND's are backed at 1 HIVE value each. With over 100 coming in each week, the temptation is to sell even a portion of these to go to the income pool. Say I decided to sell 50 each week - easily do-able with a steady buy pressure on the market at 1 HIVE each. That would be an extra 50 HIVE, converting to 297.6 LEO currently.
This is also tempting, and I could sell it as we are only selling part of the rewards, we are still growing assets so where is the harm. And really, there would be no short term harm to that, at all. But, the quicker our DBOND pile grows, the quicker we start minting more DAB. As more DAB comes in, then we generate the long term, steadily growing income.
Once again, it's tempting, but long term growth is the plan, so we won't do this.
Swap to liquid LEO payout from @leo.voter
The other thing we could do is to switch back to getting liquid LEO payouts from our leo.voter delegation, and adding those funds to income. Currently, we get them staked, and don't count them as income at all. They simply become asset growth.
This change would add 175 roughly to our weekly income, boosting dividends in the short run. However, as our LEO power grows, we should gain a growing curation reward over time. While this is not huge, it is the growth mindset we are sticking with here, rather than short term gain.
Sell EDS.
Another way we could boost short term income would be to sell off our EDS rewards each week, instead of holding them long term. Over the last week, that was 15.93 EDS. These are valued on our balance sheet as being worth 1 HIVE each. However, the market price is usually well above this, so we could pretty easily sell them for 1.5 each.
Selling the EDS would reap 142 LEO for the week (at current prices). Again, a short term boost, but that does not give us long term growth. Each week, we get more EDS, so the balance sheet grows with these new assets. Our weekly HIVE payout for holding EDS will steadily grow as this asset grows. Long term plan, versus short term quick fix.
So, there you have four different ways that I could add 1250 LEO per week to the income distribution. As an indication, that would mean last weeks income would have been 3 X bigger. Our income this week, using the current plan, will be around 500 LEO, which is not really a big number when you think we have nearly 200000 tokens in circulation, and only 40% of that 500 goes to dividends (when they start).
1750 sounds so much better, and as I have shown above, completely achievable with prices at their current level.
So, yeah, I am battling with the instant gratification urge to have higher dividends, but slower growth.
Must resist, and stick to the plan.
Thanks for reading, let me know if you think I should resist temptation, and stick to the long term plan.
Cheers,
JK
@jk6276
If you would like to learn more about the long term plan, these posts may give some insight: